Dow to construct a world-scale ethylene production plant in Texas

Published May 15, 2012

The Dow Chemical Company will construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, Texas, as part of Dow's plan to further connect its U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.

The new ethylene production facility at Dow Texas Operations will employ up to 2,000 workers at its construction peak. Over the next five to seven years, Dow estimates that this project, together with all other planned projects announced as part of the company's comprehensive U.S. investment plan, will employ up to 4,800 workers during peak construction and support over 35,000 jobs in the broader U.S. economy.

"For the first time in over a decade, U.S. natural gas prices are affordable and relatively stable, attracting new industry investments and growth and putting us on the threshold of an American manufacturing resurgence," said Andrew Liveris, Dow chairman and chief executive. "Dow is proud to have been among the first manufacturing companies to declare a comprehensive plan to take advantage of these favorable market dynamics, further enhancing our footprint in the Americas and the profitability of our global businesses while supporting economic revitalization in the communities in which we operate. Constructing this new ethylene cracker at Dow Texas Operations will create a long-term advantage for our downstream businesses and for our company as a whole, and the benefits will accrue not only to Dow but to the state and national economy."

This new plant will expand access to low-cost natural gas-based feedstocks, which are used in the production of Dow products in over a dozen consumer markets.

"The outlook for advantaged U.S. natural gas was a significant factor in Dow's decision to invest $4 billion to grow our overall ethylene and propylene production capabilities in the U.S. Gulf Coast region," said Jim Fitterling, Dow executive vice president and president of feedstocks and energy and corporate development. "Today, 70 percent of the company's global ethylene assets are in regions with cost advantaged feedstocks, and we've seen the benefits this advantage provides given oil-based naphtha margin pressure in Europe and Asia. This plan represents a game-changing move to strengthen the competitiveness of our high-margin, high-growth derivatives businesses as we continue to capture growth in the Americas."

Dow Texas Operations in Freeport is Dow's largest integrated manufacturing site worldwide and the largest single-company chemical complex in North America. With 4,200 employees and 3,000 contractors on site daily, Dow Texas Operations currently manufactures 44 percent of Dow products sold in the United States and more than 20 percent of Dow products sold globally.